Dealmaking in the middle market rose again in October, marking the fifth month of expansion, according to the Mergers & Acquisitions’ M&A Conditions Index (MACI). The composite score for the MACI was 55.4, up two points from 53.4 in the previous month.
Leads for new transactions soared to 66.7, the highest level in 2016. The component score indicates that the pipeline of potential deals is full.
October also delivered the highest score of the year for completed deals, which increased to 55.6 from 52.0. The movement suggests that some of the hurdles to closing transactions earlier in the year have been lowered.
Respondents to our monthly surveys have predicted an active fourth quarter, and the first month delivered a strong start. While October typically generates a lot of activity, with M&A pros motivated to close deals before year’s end, the uptick was especially welcome this year, following the slow first half of the year.
Without the uncertainty of a U.S. presidential election, 2017 is poised to be a good one for M&A, said many survey participants.